COMMAND DECISION TIME

 

“Oh, I just did!”   

Well, it’s “command decision time” about markets … for the record, I’m not 

giving up on gold [silver probably], but there’s no reason to trade it now, 

when 1) it’s so corrupt and manipulated, 2) rallies are pathetic, and 3) price is 

below 1340 … so, when it comes back, like we know it will at some point, we’ll 

be here to take advantage of the action … hopefully by that time, a few 

scumbag bullion dealer banks can find their way to bankruptcy.

The real decision, has to do with the traditional major FX pairs … simply put, 
central bank HQ has squelched volatility to the point, where today’s action in 
Cable at 80 something PIPS looks like a wild day … it isn’t, not even close. 
And Cable is the most volatile of the major FX pairs … what a joke it’s 
become … and the others? EURUSD, USDJPY, etc.? … they’re even worse, 
and they’ve become almost impossible to trade.

This entire last month, after a whole lot of research, algorithm study, and 

looking at consistent volatility patterns over the last few years, while we still 

maintain focus on gold, for FX I’m switching gears and going to focus on 

two [2] pairs in particular; 1) first and foremost USDMXN [Mexican Peso], 

and 2) secondarily, USDCNH [offshore Chinese Yuan a/k/a “Reminbi”].

The way trends are going in major FX pairs, volatility is likely to be subdued 
for a very long time … sure, Cable moves nicely when there’s “Brexit” news 
… other than that, it’s a complete wasteland, with nothing but chop and few 
trends that develop … truth be revealed, it’s nothing but a scumbag LP bank 
meat grinder … “oh, and we’re the meat”!

Doing the math on the Mexican Peso, sure, the spread looks wide at about 

25 PIPS … but consider this: 1) it easily puts in daily ranges of over 

1,000 PIPS per day, with many days well in excess of that, 2) it’s a North 

American market in tune with the U.S. day, 3) it’s inverted, meaning it trades 

as USDMXN, which right now @ approximately 19, translates into about 

$5,200 notional per 1 lot … that’s about 50 cents per 1 lot per PIP, and most 

importantly 4) the “Hoover Dam” thing moves and moves well, meaning it 

has plenty of intraday volatility, which the major FX pairs distinctly aren’t 

exhibiting except on rare occasions when the POLS and/or Apparatchiks 

open their Pie Holes … other than that, they’re literally dead.

By comparison with Cable, today sees Cable over 8 or 9 hours with 2 moves 
lower in about 10 minutes each, totaling about 30 - 40 PIPS … miss those 2 
time frames and you got nothing to show for it but chop … USDMXN during 
the same time had the following algorithm moves …  two 600+ PIP moves, 
three 300+ PIP moves, one 200 PIP move, and one 100 PIP move … I rest my 
case.

Tomorrow, I’ll crank it up for some Peso action, and as we make money via 

1 lots, I’ll increase volumes … this continual bulshit in GBPUSD is not only 

frustrating cuz of the “Brexit shitshow circus”, it robs us of trading other 

markets due to its inexplicable inconsistent trading action … one day a 

40 PIP range, the next 120 PIPS, and then it’s right back to 50, followed by 

“Brexit” news that shoots the range to 150 PIPS … this kind of action drives 

me nuts due to its inconsistency … this simply doesn’t happen in USDMXN, 

and as I’ve stated many times in the past, “I’ll trade dirt futures if the volatility 

and action are right”, and quite frankly I’ve reached my limit of patience with 

the other FX pairs that are even worse than Cable.

I also mentioned the Reminbi … lately, it’s been rather quiet, but when it 

heats up, it trends well intraday … the key here is the spread, and that’s why 

it’s my second choice going forward.

So, while gold diddles and we wait for it to come back, I’ll be in USDMXN 
cuz it’s volatile and puts in ranges that matter almost every day, and the 
algorithm is excellent at the turns … and no, I haven’t lost my mind, but I 
might if I continue to stick with pairs that don’t move and/or spend 90%+ of 
their time doing nothing but going up one tick and then going back down 
1 tick hour after hour and then explode … it’s impossible to trade that 
effectively without taking huge risks … we need volatility, and trading the 
Peso will give us that. This upcoming weekend, I’ll be adding it to the 20 Day 
Range MA list on the Sunday update blog post.

I didn’t trade Cable today, instead focusing on USDMXN … it had a 

1,700 PIP range today I outlined above … no FX major pair came anywhere 

close to that in terms of the intraday moves it displayed, or the concerted 

“smoothness” of the trading action, which incidentally is exactly what we’re 

looking for, but definitely not getting anywhere else in the majors, either 

dollar pairs or crosses … just look at the sad state of Yen action and the 

crosses GBPJPY & especially EURJPY … they’re pathetic, as central bank 

HQ has stripped all the volatility out of them, and they are simply a shell of 

their former selves.

So, onto the Peso & goodbye to the majors … cya wouldn’t wanna be ya 
… until tomorrow mi amigos … Onward & Upward!!
 

Have a great day everybody!

-vegas